Qualcomm (NASDAQ:QCOM) Beats, Guides Lower

Qualcomm (NASDAQ:QCOM) Beats, Guides Lower


Qualcomm (NASDAQ:QCOM) reported F-Q-2 Y 2019 results after the close Wednesday. The chip-maker posted adjusted diluted EPS of 0.77 and revenues of $4.9-B. In F-Q-2 Y 2018, Qualcomm reported EPS of 0.78 on revenues of $5.2-B. The consensus analysts’ estimates called for EPS of 0.71 and $4.8-B in revenue.

The big news for Qualcomm came in mid-April when the company settled all its legal proceedings with Apple (NASDAQ:AAPL). At the time the company said it expected an incremental EPS of 2/share in earnings for F-Y 2019.

In its outlook, Qualcomm guided F-Q-3 revenue to a range of $4.5 to 4.7-B, below the $5.08-B analysts expected.

Estimated technology licensing (QTL) revenues for the Quarter totaled $1.325-B. Adjusted diluted EPS is forecast at 0.70 to 0.80, analysts are expected EPS 0.87.

Qualcomm paid cash dividends totaling $752-M or 0.62/share in the Quarter. The company has $7.8-B remaining in a $30-B share buyback program announced in F-Q-4 Y 2018.

CEO Steve Mollenkopf said:We delivered a better than expected quarter with earnings per share above the high end of our estimates, reflecting stronger QTL results and solid execution in QCT. We are also pleased to have reached multi-year agreements with Apple and look forward to continuing to support them as a customer.

Investors were not pleased with the forecast for the current Quarter but the stock is holding it big gains on the 16 April breakout.

Qualcomm shares finished Wednesday’s after-hours market at 82.12 in a 52-wk trading range of 49.10 – 88.63. The 12-month consensus price target on the stock is at 90.31.

HeffX-LTN’s overall technical outlook for QCOM is Very Bullish in here, there is deep support and no overhead resistance.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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